Binance Engages in a Revolutionary Step by Selling Its Ownership Share

In a press release issued on Tuesday, Binance announced its plans to divest from Gopax, a South Korean-based company, marking a significant move for the leading cryptocurrency firm. This decision has sparked speculation and raised concerns within the crypto industry. Binance had acquired a majority stake in Gopax in February 2023, but faced strong opposition from South Korea’s Financial Services Commission (FSC) and the US Securities and Exchange Commission (SEC).

Binance to Sell Stake back to Gopax
Binance, one of the largest cryptocurrency exchange platforms, has made the strategic decision to sell its stake back to Gopax. This move aims to address the reporting requirements associated with Virtual Asset Business Operations (VASPs), as stated in the press release.
According to Steve Young Kim, Binance’s Asia-Pacific director, “Gopax’s large debt is expected to be partially resolved through equity-to-equity conversion.” He further added, “We anticipate being able to provide more detailed information regarding the sale of shares within the next month or two.”
Conversion of Debt into Equity
Binance has committed to providing further updates on the reduction of its stake in Gopax within the next two months. The cryptocurrency platform plans to convert the debt paid as GoFi repayment into equity, thereby selling a portion of its stake to find a viable solution to the issue at hand.
Binance’s Expansion Endeavors
Following its exit in January 2021, Binance has been eagerly looking to re-enter the South Korean market. South Korea is renowned for being a prominent hub for cryptocurrency exchange platforms, offering significant economic potential. Furthermore, the country boasts a thriving talent pool and startup community. These factors have motivated Binance to venture into South Korea.
Continued Challenges
While Binance was on the brink of finalizing the acquisition deal, the SEC lawsuit has posed significant challenges. Despite experiencing successful exits in the past, the current SEC lawsuit against Binance has hindered its operations, causing inefficiencies in the market.
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